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Debt Settlements-Using Bankruptcy As The Fall Back Position
With anything you do in life, it is always
good to have a fallback plan. A debt settlement program
is no different. In a debt settlement program, even the
debt restructure option, while unlikely, it is always
a possibility that your circumstances may change. In that
case, if you can no longer continue to make your payments,
because of a new crises in your life, their is another option.
So, what is it? It is bankruptcy. Even if you
cannot qualify for a chapter 7, which is a complete liquidation
of your debts, their is still a chapter 13. While, in my opinion,
Bankruptcy should always be the option of last resort, just
having it available can be a valuable ally. Lets look at exactly why.
In a debt settlements program, when the creditors
know that you have this option available, they are much more
likely to accept a reasonable settlement, and much less likely
to subpoena you. If they go through the expense and time
of trying to get a judgment against you, they will know
that they stand a very good chance of pushing you into
a bankruptcy. After all, you have to remember, that debt
collection is a business. The collector has in most cases
purchased your debt, in the hopes that they can collect at a
profit. This is an often overlooked reality by most consumers.
If they cannot make a profit, it is pointless for them to
spend time and energy trying to pursue you for a judgment.
The other thing to remember is that, they do pull credit reports.
They can, in most cases get enough information from the credit report,
to realize that you have the bankruptcy option available.
It is just common sense, and time has borne his out to be true.
When debt negotiators are trying to settle your
debts, they use the bankruptcy fallback position as one
of their tools. It is extremely effective, especially
if you have been qualified for a bankruptcy.
So, if you should ever find yourself in a situation,
where you need to consider the debt settlement program,
please always keep in mind the fall back position.
Written By:
Steven Ciantro
American Debt Enders
Certified Credit Counselor
help@americandebtenders.com
877-766-2465
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